How Does Zakat Institution Respond to Fintech? Evidence from BAZNAS Indonesia

Abstract

The notion of Zakat and fintech has been gaining significant attention from academics, industry professionals and other related stakeholders. However, the discussion of the subject matters remains scarce among the existing scholarly articles. The present paper aims to study the degree to which a Zakat institution has been responding to the emergence of fintech. To do so, this work selects BAZNAS, Indonesia, for further reviewing the topic discussed. Using such qualitative method, this study finds that BAZNAS has been developing its online platform along with the mobile-based application, collaborating with the existing fintech firms for payment services, and issuing quick respond (QR) code, which these efforts aim at Zakat collection. These findings suggest the way the reviewed institution has been adapting to the rise of fintech. This study is the first to make clear the understanding of the way a Zakat institution responds to technological changes. The discussion of this work is relevant for academics, industry professionals, and other Zakat stakeholders.